May 27, 2010
Flaws in euro being exposed by crisis
A BBC interview with Ollie Rehn, the European Commissioner for Economic and Monetary Affairs,lends credence to some predictions that the eurozone debt crisis will create tighter regulation and integration within the EU, versus shattering the system:
"It will not lead to any fiscal federalism, but it should lead to reinforced economic governance," he said.
"But if you are in the same boat, you should try to row in the same direction."
Critics believe there are fundamental flaws in the euro, and although it has survived in the good times, it is unworkable in a crisis.
"We have had 10 good years for the euro - with increased investment and reduced interest rates. It has also provide a protective shield for its members during the recent crisis," he said.
"But it also has certain systemic weaknesses and we have now made concrete proposals to address these weaknesses and to reinforce economic governance."
Probably a point further in the favor of this idea of heavier oversight by the EU governing body is the Greek example: as the crisis developed, the EU has required deeper and more forcefull intrusion into the Greek government, especiallly its financial decisions and directions, hence the cries from some that Athens is being reduced to the status of a "protectorate" instead of an actual country. An alternative view has been that when you join a club like the eurozone, you are required "to play by club rules."
Greece's Golden Visa program
